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Mental Health Parity Bills Approved by Senate, House Subcommittee

Senate

On September 18, the Senate approved, by voice vote, the Mental Health Parity Act of 2007 (S. 558), after adopting, by unanimous consent, a substitute amendment by Sen. Pete Domenici (R-NM). Unlike the original version of the bill, the substitute amendment would not preempt state laws that have more stringent mental health provisions, bringing it in line with the House version of the bill. The Senate Health, Education, Labor and Pensions Committee approved the measure on February 14 (see The Source, 2/16/07).

House Ways and Means Subcommittee on Health

On September 19, the House Ways and Means Subcommittee on Health approved, 10-3, the Paul Wellstone Mental Health and Addiction Equity Act of 2007 (H.R. 1424), after adopting, by voice vote, a substitute amendment by Chair Pete Stark (D-CA). Unlike the Senate bill, the House bill would require insurers to provide equitable coverage for substance abuse-related disorders. The subcommittee held a hearing on the bill on March 27 (see The Source, 3/30/07). The House Education and Labor Committee approved the bill on July 18 (see The Source, 7/20/07).

In his opening statement, Chair Stark said, “As I said at our hearing on this bill, we’ve come a long way in our diagnosis and treatment of mental illness and substance abuse. Unfortunately, laws governing mental health treatment have not progressed as quickly. Health insurers typically discriminate against people who need mental health or substance abuse treatment by imposing higher copayments, limited hospitalization periods, and lower annual and lifetime caps on mental health and addiction benefits…This bill stops that discrimination. It does so by requiring health plans to provide parity for the provision of mental health benefits. If plans offer mental health or addiction benefits, they would be prohibited from imposing discriminatory annual or lifetime benefit limits, copayments and deductibles, or day and visit limits unless similar limitations or requirements are imposed for medical or surgical benefits…The Paul Wellstone Mental Health Addiction Act simply finishes what we’ve begun and extends those protections to the private health insurance marketplace as well.”

“We all support parity for mental health and substance abuse related disorders,” said Ranking Member Dave Camp (R-MI). He continued, “We know that effectively managing the treatment of individuals suffering from mental illnesses and substance abuse will mean that they can receive appropriate medical care that leads to better health outcomes and lower costs in the future…Unfortunately, the bill before us today does not reflect the priorities of the Senate bill. Mandates included in the House bill will significantly expand the number of services that insurers must cover. Whether large or small, these costs will be passed along to the purchasers of health insurance. These additional costs will in turn make it more difficult for employers to continue providing affordable health care coverage for working Americans…We recognize the importance of achieving parity for individuals suffering from mental illnesses and substance abuse. For this reason, we should support a bill that establishes parity, protects access, and enjoys the support of mental health advocates, employers and health insurers.”

During debate on the bill, the committee defeated the following amendments:

  • an amendment by Rep. Camp that would have substituted portions of the original version of Mental Health Parity Act of 2007 (S. 558), including a provision that would have allowed insurers to define covered mental health conditions, 3-9; and
  • an amendment by Rep. Sam Johnson (R-TX) that would have delayed the bill’s effective date by one year, 3-8.
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